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Suzuki to close motorcycle factory in Spain: Needs $45 million to clear out of US


Days after Suzuki has announced its decision to declare Chapter 11 bankruptcy and shut down their American Suzuki operations, there is news of the Japanese auto manufacturer closing down their motorcycle plant in Gijón, Spain. From March 2013, Suzuki plant in Spain, from where Suzuki has been manufacturing both motorcycles and scooters since 1984 will be closed down.

This plant has been in the throes of accumulating losses to the tune of over €30 million since past four years. Suzuki Spanish plant employs 200 workers and produces 9 models such as their GZ 125, Maurader 250, Burgman 125, Burgman 200, UX 125, 150 Sixteen, DR 125 SM, GS500 and GS500F both for European and other markets. Following this decision, Suzuki Motor Spain will only be instrumental as an importer and distributor for Suzuki motorcycles in the country.

Bloomberg has now reported that Suzuki needs a loan of at least $45 million, just to shut down their dealerships and revive motorcycle and marine business in the US. The global economic crisis has had an adverse effect on Suzuki and with activities of Suzuki Motor Spain SAU suffering the most for which remedial action was necessary.


About the author

Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

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